© 2024 Fannie Mae. 8This document is incorporated by reference into the
Fannie Mae Selling Guide.
February 07, 2024
Notes – Exceptions Applicable to ALL Matrices
Other than High LTV Refinance
Non-occupant borrowers: If the income of a non-occupant borrower is used for qualifying purposes,
lower LTV, CLTV, or HCLTV ratios are required, and exceptions apply if there is a subordinate lien that
is a Community Second. See B2-2-04, Guarantors, Co-Signers, or Non-Occupant Borrowers on the
Subject Transaction. See also Note (1) below.
Nontraditional credit: Exceptions to the eligibility requirements apply to all transactions when no
borrowers have a credit score, or one or more borrowers are relying on nontraditional credit to qualify.
See B3-5.4-01, Eligibility Requirements for Loans with Nontraditional Credit.
RefiNow™ loans: These loans must be secured by fixed-rate, one-unit principal residences, with a
limited cash-out refinance transaction that has specific requirements. High-balance loans are not
permitted. A RefiNow loan may not be combined with a HomeReady refinance transaction. See LL-
2021-10 for additional information and exceptions to this Matrix.
Notes - Specific to Certain Transactions
(1) LTV, CLTV, or HCLTV Ratios Greater than 95%: These transactions are not permitted for
high-balance loans, manufactured homes that are not MH Advantage, or HomeReady loans
with sweat equity. At least one borrower on the loan must have a credit score. For non-
HomeReady purchase transactions without a Community Seconds, at least one borrower must
be a first-time home buyer. For limited cash-out refinances, Fannie Mae must be the owner of
the existing mortgage. See B2-1.3-01, Purchase Transactions and B5-6-01, HomeReady
Mortgage Loan and Borrower Eligibility.
If there is a non-occupant borrower on the transaction:
• Manually underwritten loans: LTV/CLTV/HCLTV ratio <
90%*
• DU loan casefiles: LTV/CLTV/HCLTV ratio <
95%
• Both: CLTV ratio <
105% with a Community Seconds
*For RefiNow loans, LTV/CLTV/HCLTV ratio <
95% is permitted.
(2) LTV, CLTV, or HCLTV Ratios for High-Balance 2-4 Unit Properties:
• 2 unit: <
85%
• 3-4 unit: <
75%
(3) Combination of HomeStyle Renovation, HomeReady, and Manufactured Housing: If a
transaction includes a combination of HomeStyle Renovation, HomeReady, and manufactured
housing, the more restrictive eligibility requirements of each of those transactions apply. DU will
apply the applicable eligibility requirements, but the lender must determine eligibility for
manually underwritten loans.
Examples:
1. A HomeReady mortgage that is also a HomeStyle Renovation mortgage must be a
principal residence (per HomeReady). The lender must meet the HomeStyle Renovation
lender approved requirements, as applicable.
2. A HomeReady mortgage for a manufactured home (that is not MH Advantage) must be a
one-unit property that is underwritten through DU with a maximum LTV ratio of 95% (per
manufactured housing), and a purchase or limited cash-out refinance of a principal
residence (per HomeReady).